Societal CDMO Announces Closing of $8.3 Million Public Offering of Common Stock
29 August 2023 - 1:00PM
Societal CDMO, Inc. (“Societal”; NASDAQ: SCTL), a contract
development and manufacturing organization (“CDMO”) dedicated to
solving complex formulation and manufacturing challenges primarily
in small molecule therapeutic development, today announced that the
company closed its previously announced underwritten public
offering of 20,750,000 shares of its common stock (or common stock
equivalents) at a public offering price of $0.40 per share of
common stock (or common stock equivalent) on Monday, August 28,
2023. The gross proceeds of the offering were $8.3 million, before
underwriting discounts and commissions and offering expenses.
Societal intends to use the net proceeds from the offering for
general corporate purposes.
“We are pleased to have closed this financing as
it provides Societal with additional funding to support the
continued execution of our growth objectives. This comes at a time
in which we are generating ongoing momentum in pursuing and winning
new business, both from the establishment of entirely new customer
relationships and the expansion of existing customer projects, all
while aggressively managing our expenditures during an industry
slowdown that is making it challenging for drug innovators to
secure funding for their programs,” said David Enloe, chief
executive officer of Societal. “Additionally, we believe that our
overall position has been further strengthened by the recent
appointment of Matt Arens to our board of directors. Matt is a
highly regarded life science industry investor with a track record
of supporting micro-cap, small-cap, and mid-cap health care
companies that are well positioned for growth. We welcome him to
the board and look forward to the contributions he will make to
advancing our achievement of key corporate objectives.”
Craig-Hallum Capital Group LLC acted as the sole
managing underwriter for the offering.
The securities were offered pursuant to a shelf
registration statement filed with the Securities and Exchange
Commission (“SEC”) on February 26, 2021, and declared effective by
the SEC on April 20, 2021. The offering was made only by means of
the prospectus and prospectus supplement that forms a part of the
registration statement. Copies of the final prospectus supplement
and accompanying prospectus relating to, and describing the terms
of, the offering, have been filed with the SEC and are available on
the SEC's website at www.sec.gov. Copies may also be obtained by
contacting Craig-Hallum Capital Group LLC, Attention: Equity
Capital Markets, 222 South 9th Street, Suite 350, Minneapolis,
Minnesota 55402, by telephone at (612) 334-6300, or by email at
prospectus@chlm.com.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Societal CDMO
Societal CDMO (Nasdaq: SCTL) is a
bi-coastal contract development and manufacturing organization
(“CDMO”) with capabilities spanning pre-Investigational New Drug
(“IND”) development to commercial manufacturing and packaging for a
wide range of therapeutic dosage forms with a primary focus in the
area of small molecules. With an expertise in solving complex
manufacturing problems, Societal CDMO is a leading CDMO providing
therapeutic development, end-to-end regulatory support, clinical
and commercial manufacturing, aseptic fill/finish, lyophilization,
packaging and logistics services to the global pharmaceutical
market.
In addition to Societal’s experience in handling
DEA controlled substances and developing and manufacturing
modified-release dosage forms, Societal CDMO has the expertise to
deliver on its clients’ pharmaceutical development and
manufacturing projects, regardless of complexity level. Societal
does all of this in its best-in-class facilities, which total
145,000 square feet, in Gainesville, Georgia and San Diego,
California.
Societal CDMO: Bringing Science to Society. For
more information about Societal’s customer solutions, visit
www.societalcdmo.com.
Cautionary Statement Regarding Forward
Looking Statements
This press release includes forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements, among other things, relate to the Company’s
expectations regarding its use of net proceeds from the offering,
the Company’s updated cash runway, and execution of the Company’s
business strategy, including its establishment of entirely new
customer relationships, expansion of existing customer projects,
and management of its expenditures. The words “anticipate”,
“believe”, “correlate”, “could”, “estimate”, “upcoming”, “expect”,
“intend”, “may”, “plan”, “predict”, “project”, “will” and similar
terms and phrases may be used to identify forward-looking
statements in this press release. The Company’s operations involve
risks and uncertainties, many of which are outside its control, and
any one of which, or a combination of which, could materially
affect its results of operations and whether the forward-looking
statements ultimately prove to be correct. Factors that could cause
the Company’s actual outcomes to differ materially from those
expressed in or underlying these forward-looking statements
include, but are not limited to, risks and uncertainties associated
with market conditions and the satisfaction of customary closing
conditions related to the offering, risks and uncertainties
associated with demand for the Company’s services, which depends in
part on customers’ research and development and the clinical plans
and market success of their products; customers’ changing inventory
requirements and manufacturing plans; customers and prospective
customers decisions to move forward with the Company’s
manufacturing services; the average profitability, or mix, of the
products the Company manufactures; the Company’s ability to enhance
existing or introduce new services in a timely manner; fluctuations
in the costs, availability, and suitability of the components of
the products the Company manufactures, including active
pharmaceutical ingredients, excipients, purchased components and
raw materials, or the Company’s customers facing increasing or new
competition. These forward-looking statements should be considered
together with the risks and uncertainties that may affect the
Company’s business and future results presented herein along with
those risks and uncertainties discussed in its filings with the
Securities and Exchange Commission at www.sec.gov. These
forward-looking statements are based on information currently
available to the Company, and the Company assumes no obligation to
update any forward-looking statements except as required by
applicable law.
Contacts
Stephanie Diaz (Investors)
Vida Strategic Partners
(415) 675-7401
sdiaz@vidasp.com
Tim Brons (Media)
Vida Strategic Partners
(415) 675-7402
tbrons@vidasp.com
Ryan D. Lake (CFO)
Societal CDMO
(770) 531-8365
ryan.lake@societalcdmo.com
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